The role of the tax lawyer is to create strategic tax planning to maximize profit by reducing tax payments, in addition to ensuring the operation of companies within the legal framework. In addition to preventing the entrepreneur from paying undue taxes, good planning also eliminates or considerably reduces the payment of fines resulting from errors in the delivery of returns and compliance with ancillary obligations. It also reduces the risk of possible future tax liabilities.
What Does A Tax Attorney Do?
Before knowing in which cases, you should contact a tax law firm, it is essential to know more about the role of this professional such as a certified public accountant near me. This lawyer takes care of actions related to the payment of taxes by companies, making the establishments follow the laws, but also aim at profits. Many companies pay more taxes than they should, so the professional identifies which amounts should be paid.
It is also responsible for tax verification processes and helps deliver documents and other general obligations.
When To Hire A Tax Attorney?
Regardless of the size of your business, it is essential to have a lawyer accompanying your company since its incorporation. After all, the old popular saying that prevention is better than cure perfectly applies to the legal world. In addition, the entrepreneur should not see the lawyer as a cost but as an investment that will bring good returns to the business activity.
If your business is small to medium-sized and doesn’t have so many demands, it’s worth outsourcing the service and hiring an office specializing in tax law. That way, you have a competent team working in your favor without having to pay labor costs. However, if the company is large, it is interesting to have in-house lawyers and hire external professionals only if there is a significant demand or to carry out an external
However, know the main situations in which a tax law attorney should be sought:
Doubts about the taxation regime: if you and your employees have doubts about which taxes should be collected, among other rules, it is essential to look for a law firm. Therefore, it is normal to have doubts about taxes;
Save on tax payments: we know that tax payments interfere with the company’s economy. To save on the tax issue and be within the law, investing in hiring a tax lawyer can help;
Companies that have already been fined: if your company has already been fined, a lawyer can help the business take action;
Companies that have a complex taxation regime: some companies have complicated operations involving taxes, such as businesses that work with import, export, and different states, among others, audit occasionally.
What Is The Difference Between A Tax Lawyer And An Accountant?
Although the performances of these specialists have many affinities and complement each other, they are not identical. It is up to the accountant, commonly through accounting offices or companies, to take care of the vital area of producing the accounting and tax information of the organizations, which will serve as a basis for decision making. This information covers the bookkeeping and records of all economic and financial facts, preparation and analysis of financial statements, audits, and similar work.
The lawyer, in general, through business and tax law firms, must outline the legal strategy to reduce the payment of taxes and contributions, as well as minimize or eliminate potential tax liabilities with adverse effects on companies’ future. There is also the litigation function of the legal profession, which consists of acting in defense of the organization in the administrative and judicial spheres – when there is a problem or claim with the tax authorities.
What Should I Consider When Hiring A Tax Attorney?
Because the Tax Legislation is quite dense, extensive, and confusing, the lawyer must be specialized in tax law. Therefore, he must know the positions of the inspectors, and the judging bodies in the administrative and judicial spheres, especially the courts as higher levels of the judiciary, so that the strategy is passed with more security. With exceptions, a generalist professional, accustomed to civil, labor, or criminal claims, for example, does not have the experience and specific knowledge necessary to deal with the extensive tax legislation and the routine of Organs administrative and judicial bodies that deal with this matter.
